The scheme allows the investment manager to be highly concentrated in any two or more sectors such as lifestyle, pharmaceutical, cyclical and technology. The investment manager may at any given time have a zero weightage in any or more sectors. The investment manager will proactively exercise the option of switching in and out of any two sectors completely, to take advantage of a change in market conditions.

The DSP Merrill Lynch Technology. Com fund will invest in E-commerce and internet companies, hardware, peripherals and components, software (products and services), telecom, telecommunications, and the technology and technology-dependent companies. Alok Vajpeyi, chief operating officer, DSP Merrill Lynch AMC said what the mutual fund industry has tapped so far is just the tip of the iceberg. ``Despite technology fund launches from other AMCs in the past couple of months, we feel there is still a substantial appetite for quality offerings. DSP Merrill Lynch Technology.

Com fund has the wherewithal to invest in technology-oriented sectors, thus offering broad investment avenues to the investors,'' he pointed out. R Sreesankar, chief investment officer, DSP Merrill Lynch AMC, explaining the rationale behind the launch of the DSP Merrill Lynch Opportunities Fund said: Our aim is to strongly outperform plain vanilla equity funds, which are far more diversified in their portfolio weightage to minimise risk.

Although such concentrated investments could be riskier, given the risk-reward ratio, these work out to be very attractive long term investment opportunities. The proposed launch of the two funds will increase the basket of DSP Merrill Lynch Mutual Fund from existing five schemes to seven. Both the DSP Merrill Lynch Technology.Com Fund and DSP Merrill Lynch Opportunities Fund do not have any exit load. The fund will charge only a two per cent front-end load.